Surveying The Market Chaos After The Soft CPI Print…

Well that escalated quickly…

A cooler than expected CPI unleashed hell in markets prompting a massive drop in Fed rate trajectory expectations…

Source: Bloomberg

The odds of a 50bps hike tomorrow are basically unchanged but the market’s repricing the February odds dramatically with 50bps tumbling to just 32% now (from near 60%)…

Source: Bloomberg

Stocks exploded higher with Nasdaq leading the charge, up over 4%…

Source: Bloomberg

If only there were signs https://t.co/52HKZ8Z37O

— zerohedge (@zerohedge) December 13, 2022

10Y Treasury yields plunged to last week’s low yields (back to September)…

The 2Y Yield puked to its lowest since Oct…

The dollar dumped…

Bitcoin soared back up towards $18,000 (one month highs)…

Gold spiked back above $1800, trading at its highest since June…

Will Powell unwind all this ‘easing’ of financial conditions tomorrow?